Coinbase CEO Admits Base Content Coin Strategy Failed, Shifts Focus to Onchain Trading

Ethereum layer-2 network Base, launched by Coinbase in 2023, is changing direction after several high-profile onchain initiatives failed to deliver lasting user growth. Coinbase CEO Brian Armstrong acknowledged that the network's content coin experiment did not succeed and confirmed that Base has shifted its priorities toward onchain trading and self-custody.

Over the past year, Base aggressively promoted several blockchain trends, including Zora's content-coin platform, creator coins, team-backed tokens, and its revamped social-first Base App. While these initiatives initially attracted significant user activity, many participants later suffered losses as token values declined and engagement faded.

One of the most notable efforts was Zora, which allowed users to mint social media posts as tradable tokens. Although the platform experienced a surge in activity during its token boom, critics argued that it failed to establish a sustainable user base. Base also supported creator coins, encouraging users and investment funds to back tokens linked to online personalities. However, many of these projects struggled to maintain value, leaving investors with losses.

Similarly, tokens associated with former Coinbase CTO Balaji Srinivasan and Base creator Jesse Pollak attracted attention before declining sharply, prompting criticism that retail users bore the financial downside of heavily promoted projects.

The Base App also faced criticism after developers claimed it introduced features users did not want. Coinbase has since repositioned the application as a self-custodial, trading-focused platform where every Base token can be traded directly.

Responding to criticism on Monday, Armstrong admitted that content coins had failed. "They didn't work and we pivoted early this year. We messed up, time to turn the page," he wrote.

The strategy shift comes after Base's total value locked (TVL) dropped from around $5.3 billion in January to roughly $3.9 billion by mid-February, according to DefiLlama, before recovering to approximately $4.37 billion. Meanwhile, Coinbase reported a 31% decline in quarterly revenue to $1.41 billion as spot trading volume fell 37%.

Armstrong said Base is now concentrating most of its resources on trading, followed by payments and onchain agents, while rejecting claims that the network is pivoting toward AI agents. Whether this trading-first strategy can restore user confidence after earlier setbacks remains a key challenge for the Ethereum layer-2 platform.